What’s the difference between:
ICO – Initial Coin Offering
IPO – Initial Public Offering
VCI – Venture Capital Investments (Angel Investors)
The Cryptocurrency IPO without the Venture Capitalist Investment delay.
An initial coin offering is a crypto crowfunding solution for start up blockchain companies.
How it works:
- They run a sale for a certain amount of tokens in exchange for Bitcoin, Ethereum or other liquid cryptocurrencies.
- The founders of the blockchain company offer crypto coins or digital tokens in exchange for this investment.
- The coin buyers then sell these tokens on crypto stock exchanges at a higher price.
- The ICO company keeps full ownership of the company.
- The founders raise capital quickly for operation cost.
- The ICO investors can quickly flip the crypto token on the cryptocurrency exchanges without waiting years.
No Country Restrictions:
- Crypto-currencies are Peer to peer- ICOs are available to anyone around of the world to invest in.
- These equity crypto tokens can be sent and traded to anyone with the internet and from any country.
ICOs are extremely high risk investments:
- They are not covered by any regulations
- The ICO company can disappear with the money at any time.
- These are start ups – They have been in business for less than 2 years
Initial Public Offering – The word ‘ Public’ redefined.
Established companies run an IPO to finance expansions.
These private companies have been in business for have been in business for the several years.
- They have an existing track record of good business.
- They need to adhere to all local financial regulations.
- IPOs require a lot of paperwork
IPO investing is considered low risk compared Blockchain ICO investing
The dark side
Unfortunately IPO investment is reserved for the elite of the country.
Only a closed circle of investors or high profile investors qualify to participate in an IPO
Smaller investors can purchase only stocks after they reach the stock exchanges.
VCI -Venture Capitalist Investment
Angel investors /the business angel/private investor/angel under/seed investor
Venture Capitalist Investors are elite investors who invest in high risk projects in exchange for company equity.
- The start up companies give up ownership in exchange of the investment.
- Angel Investors need to wait years before they see their ROI
- Venture Capitalist lose a lot of money with failed investments.
ICOs are the best both worlds.